Business
Dingdong Announces Intention to Utilize Substantial Majority of Proceeds from Sale of China Operations for Share Repurchase Plans and/or Dividends upon Closing of Transaction
Dingdong (Cayman) Limited ("Dingdong Cayman" or the "Company") (NYSE: DDL), a leading fresh grocery e-commerce company in China, today announced that it intends to utilize a substantial majority of the cash proceeds from the sale of its China operations upon the closing of such Transaction (as defined below) for share repurchases or the issuance of dividends to its shareholders.
About this update from Meituan Class B
[{"type":"text","content":"SHANGHAI, Feb. 10, 2026 /PRNewswire/ -- Dingdong (Cayman) Limited ("Dingdong Cayman" or the "Company") (NYSE: DDL), a leading fresh grocery e-commerce company in China, today announced that it intends to utilize a substantial majority of the cash proceeds from the sale of its China operations upon the closing of such Transaction (as defined below) for share repurchases or the issuance of dividends to its shareholders.","length":441,"tagName":"p"},{"type":"text","content":"As previously disclosed on February 5, 2026, the Company entered into a definitive Share Purchase Agreement (the "Share Purchase Agreement") with Two Hearts Investments Limited ("Buyer"), a wholly-owned subsidiary of Meituan (HKEX: 3690). Pursuant to the Share Purchase Agreement, Dingdong Cayman has agreed to sell to the Buyer all issued and outstanding shares of Dingdong Fresh Holding Limited, Dingdong Cayman's wholly-owned subsidiary incorporated in the British Virgin Islands ("Dingdong BVI" or the "Target Company"), which holds through a series of wholly-owned and majority equity interest subsidiaries substantially all of Dingdong Cayman's operations in China (the "Transaction").","length":749,"tagName":"p"},{"type":"text","content":"Pursuant to the terms of the Share Purchase Agreement, Buyer will pay cash consideration of US$717 million in the Transaction. In addition, Dingdong Cayman will have the right to receive prior to August 31, 2026 total cash not exceeding US$280 million from Dingdong BVI and its subsidiaries (provided that the total net cash of Dingdong BVI and its subsidiaries on a consolidated basis as of December 31, 2025 minus such amounts received by Dingdong Cayman shall not be less than US$150 million). As such, Dingdong Cayman expects that it will receive up to US$997 million in cash proceeds from the Transaction. This amount is subject to certain adjustments, including those based on certain net cash, net working capital and other financial line item thresholds of Dingdong BVI and its subsidiaries as of certain agreed upon dates. In the event that the net cash of Dingdong BVI and its subsidiaries on a consolidated basis as of December 31, 2025 minus the amounts received by Dingdong Cayman as described above is less than US$150 million, the Buyer has the right to...